ING has unveiled plans to introduce funding restrictions that will target oil and gas infrastructure as it seeks to align with its climate goals.
According to ESG Today, the company will introduce new funding restrictions on oil and gas infrastructure and will reduce the volume of traded oil and gas financed in its Trade and Commodity Finance business.
ING stated that it is aligning its portfolio with the International Energy Agency’s (IEA) Net-Zero Emissions by 2050 Roadmap, and that it is also on track to reduce its upstream oil and gas portfolio by 19% by 2030.
The new plans will include restrictions to midstream infrastructure, with ING looking to adopt a net zero by 2050-aligned methodology for areas including pipelines, liquified natural gas terminals and storage facilities.
In its Trade and Commodity Finance business, ING remarked that it is aiming to reduce the combined volume of oil and gas that it finances using the same 19% by 2030 target under its upstream commitment, and said it will be reaching out to experts and peer banks to co-develop a methodology for reduction targets based on volumes financed.
ING said, “It’s a balancing act. Moving away from fossil fuels has a social impact – if the supply of fossil fuels decreases too fast, the price of energy could skyrocket and bring many people into financial problems. We want to balance our climate action with our societal role to ensure energy remains affordable and available for people and companies.”
Barclays recently announced a new policy that will substantially limit its financing activities for a range of emissions-intensive energy sectors.
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